30 August 2016 | Taxation
The First-tier Tribunal has confirmed that a taxpayer’s statutory records can include statements for a personal bank account if the account is used for business purposes. As a result, HMRC’s information notice requesting those statements was not appealable. Akrill v HMRC  UKFTT 0550 (TC).
The First-tier Tribunal has confirmed that a taxpayer’s statutory records can include statements for personal bank accounts used for business purposes. Therefore, the taxpayer had no right of appeal against HMRC’s information notice.
This decision highlights the importance of keeping personal and business transactions and accounts separate.
The tribunal did not accept that, following Beckwith v HMRC  UKFTT 181 (TC), personal bank accounts could only be statutory records if they were an “operational part” of a business. It held that the taxpayer’s personal account bank statements were statutory records because VAT repayments relating to his business activities were paid into the account and it was the only account notified to HMRC (although the tribunal suggested that if a taxpayer only notified a personal account to HMRC but was always in a net VAT payment position, with payments made only from another (business) account, that might not render personal account statements statutory records).
Unsurprisingly, the tribunal commented that occasional transfers of funds from personal accounts into a taxpayer’s business would not themselves render statements for that account business records because such transfers were investments rather than business transactions.
Akrill v HMRC  UKFTT 0550 (TC)
If you have any concerns about how this may affect you, please contact Angus Nicolson.
The information provided is for general information purposes only.
Legislation and details may have changed since this was written. The text may not include all matters that are relevant to your individual situation.
You should not make decisions, or refrain from making decisions, without taking further professional advice about your specific circumstances.
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